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Global General

US debt to hit limit in February

(Xinhua)
Updated: 2010-02-04 00:45
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US debt is expected to hit its congressionally approved ceiling by the end of February, according to the Treasury Department on Wednesday.

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The department said it was working closely with Congress to raise the ceiling, currently at $12.4 trillion. The Senate has approved legislation to increase it by $1.9 trillion to $14.3 trillion, but the House has yet to pass the measure.

The US government released a budget that projects the federal deficit in fiscal year 2010 would reach a record-breaking $1.56 trillion. As a percentage of the economy, it is about 10.6 percent, the highest since World War II.

The Treasury projects that the debt to economy ratio will fall to 4 percent in the coming years. However, budget experts are skeptical about the figure.
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